One in four home buyers say they want to buy a home because their rent is too high, according to a new survey by the brokerage Redfin of 750 home purchasers. The number of home buyers citing high rents as a main motivation to buy is rising – up from one in eight last August.
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Still, affordability remains the chief concern on home buyers’ minds. Twenty percent are concerned about the limited number of homes for sale – also on the rise. Sixteen percent are concerned about too much competition from other buyers – a five percentage jump over last quarter, according to Redfin’s survey.
Home buyers are also braced for home prices to rise in the coming months. Fifty-three percent say they anticipate prices will rise soon compared to 48 percent of previous survey respondents from last quarter. But mortgage rates remain important to them. Sixty-seven percent of buyers said mortgage rates were important or very important motivators in their purchase decisions.
Source: “One in Four Home Buyers Cites High Rent as Reason for Buying,” Redfin (Feb. 25, 2016)